Poverty is defined as a state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living.
Low economic development: India experienced a low level of economic development during the British colonial rule which destroyed traditional handicrafts and resulted in less job opportunities and hence low growth rate of incomes.
High population growth rate: The jobs created in the agricultural sector after the green revolution were not able to satisfy the job demand of all the job seekers due to high population growth rate in India. Low levels of income pushed people into living in slums and poverty.
Income inequality: The primary reason behind income inequality shall be attributed to the unequal distribution of land and other resources in India.
Socio-cultural and economic reasons: These factors include who borrow money for festivals and marriage ceremonies out of obligation. It also includes small farmers who fall into debt-traps.
In economics, poverty is generally defined as a condition in which a person or a community lacks the financial resources to enjoy a minimum standard of living considered acceptable in a given society. Poverty is a complex and multidimensional concept that goes beyond the simple absence of money. It encompasses various aspects of deprivation and impacts individuals' access to basic necessities and opportunities for a decent life.
Here are key dimensions and perspectives related to poverty in economics:
1. **Income and Consumption:**
- One of the most common measures of poverty is based on income or consumption levels. Individuals or households earning below a certain threshold are considered to be living in poverty.
2. **Absolute Poverty vs. Relative Poverty:**
- Absolute poverty is defined by a fixed standard, often representing the minimum income required to meet basic needs such as food, shelter, and clothing. Relative poverty, on the other hand, considers individuals or families in comparison to the broader community or society.
3. **Multidimensional Poverty:**
- Poverty is not only about income but also involves a lack of access to education, healthcare, housing, and other essential services. Multidimensional poverty indices take into account a range of factors to provide a more comprehensive understanding of poverty.
4. **Poverty Lines and Thresholds:**
- Economists often use poverty lines or thresholds to quantify poverty. These are specific income levels or consumption patterns below which individuals are considered to be living in poverty. Poverty lines can vary across countries based on the cost of living.
5. **Cyclical and Structural Poverty:**
- Poverty can be cyclical, meaning it is temporary and may result from economic downturns or personal setbacks. Structural poverty is more enduring and is often related to systemic issues such as lack of education, discrimination, or limited economic opportunities.
6. **Social Exclusion:**
- Poverty is not only an economic concept but also involves social exclusion. Individuals living in poverty may face barriers to full participation in society, limiting their access to social and economic opportunities.
7. **Global Poverty:**
- Poverty is not limited to specific regions or countries. Global poverty refers to the widespread existence of poverty across the world. International efforts often focus on addressing global poverty through initiatives such as sustainable development goals.
Understanding and addressing poverty is a central concern in economics, and various policies and interventions are developed to alleviate poverty and improve the well-being of individuals and communities.
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In economics, poverty is generally defined as a condition in which a person or a community lacks the financial resources to enjoy a minimum standard of living considered acceptable in a given society. Poverty is a complex and multidimensional concept that goes beyond the simple absence of money. It encompasses various aspects of deprivation and impacts individuals' access to basic necessities and opportunities for a decent life.
Here are key dimensions and perspectives related to poverty in economics:
1. **Income and Consumption:**
- One of the most common measures of poverty is based on income or consumption levels. Individuals or households earning below a certain threshold are considered to be living in poverty.
2. **Absolute Poverty vs. Relative Poverty:**
- Absolute poverty is defined by a fixed standard, often representing the minimum income required to meet basic needs such as food, shelter, and clothing. Relative poverty, on the other hand, considers individuals or families in comparison to the broader community or society.
3. **Multidimensional Poverty:**
- Poverty is not only about income but also involves a lack of access to education, healthcare, housing, and other essential services. Multidimensional poverty indices take into account a range of factors to provide a more comprehensive understanding of poverty.
4. **Poverty Lines and Thresholds:**
- Economists often use poverty lines or thresholds to quantify poverty. These are specific income levels or consumption patterns below which individuals are considered to be living in poverty. Poverty lines can vary across countries based on the cost of living.
5. **Cyclical and Structural Poverty:**
- Poverty can be cyclical, meaning it is temporary and may result from economic downturns or personal setbacks. Structural poverty is more enduring and is often related to systemic issues such as lack of education, discrimination, or limited economic opportunities.
6. **Social Exclusion:**
- Poverty is not only an economic concept but also involves social exclusion. Individuals living in poverty may face barriers to full participation in society, limiting their access to social and economic opportunities.
7. **Global Poverty:**
- Poverty is not limited to specific regions or countries. Global poverty refers to the widespread existence of poverty across the world. International efforts often focus on addressing global poverty through initiatives such as sustainable development goals.
Understanding and addressing poverty is a central concern in economics, and various policies and interventions are developed to alleviate poverty and improve the well-being of individuals and communities.
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